LUV vs. UAL: Southwest Airlines vs. United Airlines Stock Comparison
How do Southwest Airlines (LUV) and United Airlines (UAL) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Southwest Airlines (LUV) and United Airlines (UAL) are both classified in the Passenger Airlines sub-industry within the broader Passenger Airlines industry, placing them in the closest GICS peer bucket.
| Profile Item | LUV | UAL |
|---|---|---|
| Name | Southwest Airlines Co. | United Airlines Holdings, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Transportation | Transportation |
| GICS Industry | Passenger Airlines | Passenger Airlines |
| GICS Sub-Industry | Passenger Airlines | Passenger Airlines |
| Market Capitalization | 21.76 billion USD | 36.63 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | January 2, 1980 | February 6, 2006 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | LUV | UAL |
|---|---|---|
| Total Return (1Y) | 44.35% | 22.35% |
| Total Return (3Y, Annualized) | 28.08% | 47.27% |
| Total Return (5Y, Annualized) | -0.31% | 17.68% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | LUV | UAL |
|---|---|---|
| Volatility (1Y, Annualized) | 44.46% | 48.88% |
| Beta (5Y) | 1.19 | 1.32 |
| Max Drawdown (5Y) | -55.39% | -49.19% |
| Avg. Volume (3M) | 5.76M | 4.24M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | LUV | UAL |
|---|---|---|
| Sharpe Ratio (1Y) | 0.90 | 0.37 |
| Sortino Ratio (1Y) | 1.51 | 0.59 |
Profitability
ROE (TTM)
United Airlines (UAL) at 22.31% sits in the top ROE quartile, while Southwest Airlines (LUV) at 13.94% is closer to the peer norm — stronger capital efficiency for UAL.
LUV
Transportation industry group
13.94%
- Max
- 45.08%
- Q3
- 22.02%
- LUV
- 13.94%
- Median
- 13.94%
- Q1
- 2.89%
- Min
- -10.45%
UAL
Transportation industry group
22.31%
- Max
- 45.08%
- UAL
- 22.31%
- Q3
- 22.02%
- Median
- 13.94%
- Q1
- 2.89%
- Min
- -10.45%
Net Margin (TTM)
Both Southwest Airlines (LUV) at 3.34% and United Airlines (UAL) at 5.46% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
LUV
Transportation industry group
3.34%
- Max
- 50.36%
- Q3
- 21.18%
- Median
- 5.58%
- LUV
- 3.34%
- Q1
- 1.55%
- Min
- -11.37%
UAL
Transportation industry group
5.46%
- Max
- 50.36%
- Q3
- 21.18%
- Median
- 5.58%
- UAL
- 5.46%
- Q1
- 1.55%
- Min
- -11.37%
Operating Margin (TTM)
United Airlines (UAL) at 7.03% runs core operations around its industry’s norm, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.
LUV
Transportation industry group
4.49%
- Max
- 59.18%
- Q3
- 29.30%
- Median
- 11.50%
- Q1
- 4.62%
- LUV
- 4.49%
- Min
- -8.91%
UAL
Transportation industry group
7.03%
- Max
- 59.18%
- Q3
- 29.30%
- Median
- 11.50%
- UAL
- 7.03%
- Q1
- 4.62%
- Min
- -8.91%
Profitability Metrics
| Metric | LUV | UAL |
|---|---|---|
| ROE (TTM) | 13.94% | 22.31% |
| ROA (TTM) | 3.05% | 3.31% |
| Net Margin (TTM) | 3.34% | 5.46% |
| Operating Margin (TTM) | 4.49% | 7.03% |
| Gross Margin (TTM) | 22.14% | 30.87% |
Growth
Revenue Growth
Both Southwest Airlines (LUV) at 2.11% and United Airlines (UAL) at 3.52% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Southwest Airlines (LUV) at 3.95% and United Airlines (UAL) at 7.94% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | LUV | UAL |
|---|---|---|
| Revenue Growth (YoY) | 2.11% | 3.52% |
| Revenue Growth (3Y CAGR) | 5.63% | 9.53% |
| EPS Growth (YoY) | 3.95% | 7.94% |
| EPS Growth (3Y CAGR) | -3.16% | 66.00% |
Financial Strength
Current Ratio (MRQ)
Both Southwest Airlines (LUV) at 0.47 and United Airlines (UAL) at 0.75 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
LUV
Transportation industry group
0.47
- Max
- 2.58
- Q3
- 1.62
- Median
- 1.16
- Q1
- 0.78
- LUV
- 0.47
- Min
- 0.22
UAL
Transportation industry group
0.75
- Max
- 2.58
- Q3
- 1.62
- Median
- 1.16
- Q1
- 0.78
- UAL
- 0.75
- Min
- 0.22
Debt / Equity (MRQ)
Southwest Airlines (LUV) at 0.94 carries an industry-typical debt-to-equity mix, while United Airlines (UAL) at 1.93 uses more debt funding than most peers.
LUV
Transportation industry group
0.94
- Max
- 2.75
- Q3
- 1.37
- LUV
- 0.94
- Median
- 0.78
- Q1
- 0.35
- Min
- 0.00
UAL
Transportation industry group
1.93
- Max
- 2.75
- UAL
- 1.93
- Q3
- 1.37
- Median
- 0.78
- Q1
- 0.35
- Min
- 0.00
Financial Strength Metrics
| Metric | LUV | UAL |
|---|---|---|
| Current Ratio (MRQ) | 0.47 | 0.75 |
| Debt / Equity (MRQ) | 0.94 | 1.93 |
| Net Debt / EBITDA | 1.21 | 2.79 |
Dividends
Dividend Yield (TTM)
United Airlines (UAL) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Southwest Airlines (LUV) reports a yield of 1.62%, ranking against industry peers normally.
LUV
Transportation industry group
1.62%
- Max
- 4.68%
- Q3
- 1.99%
- LUV
- 1.62%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
UAL
Transportation industry group
0.00%
- Max
- 4.68%
- Q3
- 1.99%
- Median
- 0.74%
- UAL
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
United Airlines (UAL) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Southwest Airlines (LUV) reports a payout of 35.12%, ranking against industry peers normally.
LUV
Transportation industry group
35.12%
- Max
- 100.89%
- Q3
- 41.68%
- LUV
- 35.12%
- Median
- 20.43%
- Q1
- 0.00%
- Min
- 0.00%
UAL
Transportation industry group
0.00%
- Max
- 100.89%
- Q3
- 41.68%
- Median
- 20.43%
- UAL
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | LUV | UAL |
|---|---|---|
| Dividend Yield (TTM) | 1.62% | 0.00% |
| Dividend Payout Ratio (TTM) | 35.12% | 0.00% |
Valuation
P/E Ratio (TTM)
United Airlines (UAL) at 10.32 sits in the cheaper P/E ratio quartile, while Southwest Airlines (LUV) at 21.68 is closer to its industry’s usual earnings multiple — a discount for UAL, though growth and earnings durability still matter.
LUV
Transportation industry group
21.68
- Max
- 46.76
- Q3
- 30.87
- LUV
- 21.68
- Median
- 20.58
- Q1
- 10.44
- Min
- 0.00
UAL
Transportation industry group
10.32
- Max
- 46.76
- Q3
- 30.87
- Median
- 20.58
- Q1
- 10.44
- UAL
- 10.32
- Min
- 0.00
P/S Ratio (TTM)
On P/S ratio, both Southwest Airlines (LUV) at 0.69 and United Airlines (UAL) at 0.56 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
LUV
Transportation industry group
0.69
- Max
- 4.35
- Q3
- 2.07
- Median
- 0.93
- LUV
- 0.69
- Q1
- 0.53
- Min
- 0.04
UAL
Transportation industry group
0.56
- Max
- 4.35
- Q3
- 2.07
- Median
- 0.93
- UAL
- 0.56
- Q1
- 0.53
- Min
- 0.04
P/B Ratio (MRQ)
On P/B ratio, both Southwest Airlines (LUV) at 2.97 and United Airlines (UAL) at 2.06 are valued close to their industries’ norm against book — neither stands out from peers.
LUV
Transportation industry group
2.97
- Max
- 6.29
- Q3
- 3.39
- LUV
- 2.97
- Median
- 1.90
- Q1
- 1.03
- Min
- -2.07
UAL
Transportation industry group
2.06
- Max
- 6.29
- Q3
- 3.39
- UAL
- 2.06
- Median
- 1.90
- Q1
- 1.03
- Min
- -2.07
Valuation Metrics
| Metric | LUV | UAL |
|---|---|---|
| P/E Ratio (TTM) | 21.68 | 10.32 |
| P/S Ratio (TTM) | 0.69 | 0.56 |
| P/B Ratio (MRQ) | 2.97 | 2.06 |
| Free Cash Flow Yield (TTM) | -2.82% | -1.57% |